Test $1-1--$ ADMN$1306$

NAME:

Effective operation of a business requires that business managers

a$.$ rely on lawyers to form the right questions and answers for legal issues.

b$.$ do not have to become experts in the activities of their businesses.

c$.$ simply rely on the decisions made by those in authority above them.

d$.$ do not have to familiarize themselves with the law.

e$.$ must know the law and must understand the legal risks associated with the everyday choices that they make.

A risk management plan

a$.$ does not require regular revision.

b$.$ does nothing to promote the better conduct of a business.

c$.$ is only necessary in sophisticated businesses.

d$.$ does not necessarily involve a lawyer in every part of the overall plan.

e$.$ helps a business to identify and anticipate potential legal liability.

Which of the following will a business use to reduce its liability?

a$.$ risk reduction

b$.$ risk absorption

c$.$ risk avoidance

d$.$ risk transfer

e$.$ all of the above

To implement a risk management plan, a business must first

a$.$ prioritize the risks.

b$.$ develop effective strategies to deal with the risks.

c$.$ revise the plan on a regular basis.

d$.$ implement the plan.

e$.$ conduct a legal audit of the business operation.

$4$